As gas prices continue to climb, gift card company SVM has announced the launch of a new business unit focused specifically on offering consumers gasoline rewards. The new unit, named FuelCircle, draws on SVM’s nationwide relationships with gas and oil companies to allow reward-issuing merchants to offer reloadable FuelCircle gift cards for a wide range of consumer behaviors.
Unlike with traditional gas cards, the FuelCircle cards are not brand specific, and the gas stations they can be used at include BP, Chevron, ExxonMobil, and Sunoco. This amounts to nearly 40,000 fuel redemption locations, and some 450,000 redemption devices across SVM’s network.
“We envision the consumer will be able to shop at FuelCircle merchants, earning points for everyday purchases that will be allocated to a central consumer database,” says John Cullen, vice president of loyalty for SVM. “Then, when a threshold of points is achieved, it will automatically convert to dollars off on gasoline.”
SVM is looking to partners with a wide range of merchants, including grocery stores, drug stores, travel and hospitality brands, even service companies like auto shops and home repair services.
“It could be everyday purchases, or even large-ticket operators like tires or air conditioning systems or mattresses,” says Cullen.
Merchant partners will be able to integrate FuelCircle into their existing loyalty program or offer it as a separate reward system, customizing it to whatever scheme fits their business needs.
Cullen emphasizes that while the timing of FuelCircle’s launch comes at a time when gas prices are breaking records, the program is expected to appeal to consumers whether gas prices are $4 a gallon or $1.50. He points to studies that have found that consumers place a higher value on gas than they do on other necessities like groceries or electricity, even when dollar-for-dollar they cost the same.
Cullen adds that by working with a broad network, retailers can participate for particular promotions or certain times of the year, rather than committing to a full-time embrace of the program.
“It’s a lower implementation cost, which allows them to join for say a back-to-school promotion, or tailgating season,” says Cullen. “It brings in fuel as a relevant alternative to what’s been done in the past in terms of price discounting.”